Issuer Free Writing Prospectus Dated October 8, 2009
Relating to Preliminary Prospectus Dated September 24, 2009
Filed Pursuant to Rule 433
Registration Statement No. 333-162115

DRAGONWAVE ANNOUNCES Q2 FISCAL 2010 RESULTS
Record revenues of $35.5 million; 123% sequential revenue growth
Profitability achieved; $6.3 million net income

Ottawa, Canada, October 8, 2009 — DragonWave Inc. (TSX: DWI) ("DragonWave" or the "Company") a leading global supplier of packet microwave radio systems for mobile and access networks, today issued financial results for its second quarter fiscal year 2010. All figures are prepared in accordance with Canadian generally accepted accounting principles (GAAP) and are reported in Canadian dollars.

This news release contains statements, including statements regarding our revenue expectations for our 2010 fiscal year, that constitute forward-looking statements or forward-looking information. Readers are cautioned that such statements are based on DragonWave's current views and actual outcomes are not certain. For more information, see the note on forward-looking statements below.

Revenue for the second fiscal quarter was $35.5 million, compared with $10.6 million for the same period of the last fiscal year, an increase of 236%. There was growth in demand from a variety of customers globally and the most significant increase came from the Company's existing major North American based customer, which accounted for 77% of revenue in the fiscal quarter. Revenue from customers within North America increased from $7.7 million in the second quarter of the previous fiscal year to $31.9 million and represented 90% of total revenue for the quarter. Revenue from outside North America also increased, growing 24% to $3.6 million from $2.9 million in the second quarter of the previous fiscal year, and represented 10% of total revenue for the quarter. Revenue for the six months ended August 31, 2009 was $51.5 million, 142% growth as compared to $21.3 million in the same six month period in the previous year.

Gross margin for the second fiscal quarter was 42%, an 8% increase from the gross margin reported in the second quarter of fiscal 2009, and reflects the benefits of cost reduction programs, new sources of supply and volume discounts made available as a result of the increase in demand. Gross margin for the six months ended August 31, 2009 was 40% compared to 38% in the same six month period in the previous year.

For the second quarter of fiscal year 2010, the Company achieved an income from operations of $6.1 million, compared to a loss of $2.8 million in the second quarter of fiscal 2009. Expenses in the second quarter of fiscal 2010 increased to $8.9 million from $6.5 million in the same quarter of the previous year. The net income for the fiscal quarter was $6.3 million (diluted EPS $0.21) versus a loss of $1.7 million in the same quarter of the previous year.

Based on strength in the ongoing Clearwire business together with stronger demand in other areas of the DragonWave business we now expect that our revenue in fiscal year 2010 will exceed $150 million.

The DragonWave management team will discuss the results on a conference call on October 9, 2009 at 8:30 a.m. Eastern time (1:30 GMT). As the Company is in the process of a public offering of securities the conference call will not include a question and answer session.

Presentation material and a webcast link will be made available from the Investor Relations portal of DragonWave's web site at:
http://www.dragonwaveinc.com/irevents.asp

Conference Call Details:
Beginning at 8:30 a.m., EDT
Toronto Dial In Number: 416-883-7132
Ottawa Dial In Number: 613-212-0152
Montreal Dial In Number: 514-798-1229
Vancouver Dial In Number: 604-899-4201
Toll Free Dial In Number: 1-888-205-4499
Europe Dial In Number: 00-800-8358-7000
Participant Pass Code: 37041#

A replay of the call will be made available on the DragonWave Inc. web site, through the Investor Relations portal.

To review financial statements and Management's Discussion and Analysis for the quarter, please go to www.sedar.com.

DragonWave® is a leading provider of high-capacity packet microwave solutions that drive next-generation IP networks. DragonWave's carrier-grade point-to-point packet microwave systems transmit broadband voice, video and data, enabling service providers, government agencies, enterprises and other organizations to meet their increasing bandwidth requirements rapidly and affordably. The principal application of DragonWave's products is wireless network backhaul. Additional solutions include leased line replacement, last mile fiber extension and enterprise networks. DragonWave's corporate headquarters is located in Ottawa, Ontario, with sales locations in Europe, the Middle East and North America. For more information, visit http://www.dragonwaveinc.com.

Certain statements in this release, including the estimate of future revenues provided above, constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. These statements are subject to certain assumptions, risks and uncertainties. Material factors and assumptions used to develop such estimates include:

These statements are provided to enable external stakeholders to understand DragonWave's expectations as of the date of this release and may not be appropriate for other purposes.

Actual results, performance, achievements or developments of DragonWave may differ materially from the results, performance, achievements or developments expressed or implied by such statements. Risk factors that may cause the actual results, performance, achievements or developments of DragonWave to differ materially from the results, performance, achievements or developments expressed or implied by such statements can be found in the public documents filed by DragonWave with Canadian securities regulatory authorities, which are available at www.sedar.com, and include the following:

DragonWave assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law.

For further information, please contact:
DragonWave Inc.
Russell Frederick
Chief Financial Officer
(613) 599-9991 ext. 2253
rfrederick@dragonwaveinc.com



Assets
Current Assets
	Cash and cash equivalents	21,349		8,504
	Short term investments	—		14,994
	Accounts receivable	26,002		10,523
	Other receivables	1,240		720
	Inventory	15,346		14,238
	Prepaid expenses	746		173
	Future income tax asset	207		—

		64,890		49,152
Long Term Assets
	Property and equipment	4,130		2,676
	Future income tax asset	139		—
	Deferred financing	657		—

		4,926		2,676
Total Assets		69,816		51,828

Liabilities
Current Liabilities
	Line of credit	587		641
	Accounts payable and accrued liabilities	20,128		5,640
	Taxes payable	246		37
Deferred revenue		1,562		2,215

		22,523		8,533
Commitments
Shareholders' equity
	Capital stock	120,001		119,925
	Contributed surplus	1,744		1,230
	Deficit	(74,452	)	(77,860	)

		47,293		43,295
Total Liabilities and Shareholders' Equity		69,816		51,828

CONSOLIDATED STATEMENTS OF OPERATIONS,

COMPREHENSIVE INCOME AND DEFICIT

Expressed in Canadian $000's except share and per share amounts

unaudited

		Three months ended						Six months ended

		August 31, 2009			August 31, 2008			August 31, 2009			August 31, 2008
REVENUE			35,509			10,572			51,459			21,297
	Cost of sales		20,584			6,945			31,024			13,289

Gross profit			14,925			3,627			20,435			8,008

EXPENSES
	Research and development		3,544			2,594			6,568			5,725
	Selling and marketing		3,567			2,783			6,106			5,407
	General and administrative		1,819			1,133			3,050			2,263
	Investment tax credits		(60	)		(50	)		(120	)		(100	)

			8,870			6,460			15,604			13,295

Income (Loss) from operations			6,054			(2,833	)		4,830			(5,287	)
	Interest income		10			179			44			433
	Interest expense		(15	)		(9	)		(22	)		(18	)
	Gain on sale of property and equipment		35			—			35			—
	Foreign exchange gain (loss)		70			997			(1,616	)		1,265

Income (Loss) before income taxes			6,154			(1,666	)		3,271			(3,607	)
	Income tax expense		(209	)		(11	)		(209	)		(11	)
	Future income tax recovery		346			—			346			—

Net and Comprehensive Income (Loss)			6,291			(1,677	)		3,408			(3,618	)
Deficit, beginning of period			(80,743	)		(73,812	)		(77,860	)		(71,871	)

Deficit, end of period			(74,452	)		(75,489	)		(74,452	)		(75,489	)

Income (Loss) per share
	Basic		0.22			(0.06	)		0.12			(0.13	)
	Diluted		0.21			(0.06	)		0.12			(0.13	)
Weighted Average Shares Outstanding
	Basic		28,620,162			28,555,335			28,594,700			28,517,929
	Diluted		29,675,696			28,555,335			29,281,050			28,517,929

		Three months ended						Six months ended

		August 31, 2009			August 31, 2008			August 31, 2009			August 31, 2008
Operating Activities
Net Income (loss)			6,291			(1,677	)		3,408			(3,618	)
Items not affecting cash
	Depreciation		336			260			639			495
	Stock-based compensation		302			157			544			303
	Warrant expense		—			(9	)		—			2
	Unrealized foreign exchange (gain) loss		359			(124	)		1,391			(64	)
	Gain on sale of fixed asset		(35	)		—			(35	)		—
	Benefit on recognition of future income tax asset		(346	)		—			(346	)		—
	Accrued interest on fair value of short-term investments		—			—			—			150

			6,907			(1,393	)		5,601			(2,732	)
Changes in non-cash working capital items			(5,709	)		(1,711	)		(4,258	)		(2,450	)

			1,198			(3,104	)		1,343			(5,182	)

Investing Activities
	Acquisition of property and equipment		(1,501	)		(347	)		(2,093	)		(670	)
	Maturity of short-term investments		—			—			14,994			31,758

			(1,501	)		(347	)		12,901			31,088

Financing Activities
	Change in line of credit		1			22			(54	)		26
	Exercise of warrants		—			—			—			150
	Issuance of common share net of issuance costs		35			—			46			—

			36			22			(8	)		176

Effect of foreign exchange on cash and cash equivalents			(359	)		124			(1,391	)		64
Net increase in cash and cash equivalents			(626	)		(3,305	)		12,845			26,146
Cash and cash equivalents at beginning of period			21,975			31,002			8,504			1,551

Cash and cash equivalents at end of period			21,349			27,697			21,349			27,697

Cash paid during the period for interest			15			9			22			18

DragonWave Inc. (the "issuer") has filed a registration statement (Registration No. 333- 162115, including a prospectus) under the Securities Act of 1933, as amended, with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer will arrange to send you the prospectus included in the registration statement relating to this offering and any other offering documents if you request them by calling (613) 599-9991.


(s) GERRY SPENCER Director		(s) CLAUDE HAW Director